Champlin’s finances earn clean bill of health

Champlin’s 2011 financial audit turns up good news for another year. The auditor, Tom Hodnefield, of HLB Tautges Redpath, Ltd., returned an unqualified, or clean, result.

"This means the city’s finances have been given the highest level of assurance and should be considered reliable," said Hodnefield in a presentation to the city council at their June 11 meeting.

Hodnefield explained that several reports were prepared during the course of the audit. The comprehensive annual financial report was prepared entirely in-house by Champlin’s finance staff under the direction of Finance Director June Johnson.

"That is quite an accomplishment for how much effort that takes," said Hodnefield. "We audit a lot of governments and only a small percentage take the financial statements from start to finish so I congratulate you for being in that group."

Additional reports included one on internal control compliance where there were also no findings other than a material weakness. This was based on an adjustment of a significant amount that had to be made related to some expenses that are part of a capital project but hadn’t been capitalized yet. Hodnefield called it an "automatic finding."

The state view compliance report compares the city’s finances against certain Minnesota statutes. There were no findings in that report.

Other details of the report showed the city’s fund balance increased by $36,000 during the year. Also, during the year, the city modified their targeted general fund reserve policy and at Dec. 31, 2011, the city was within the targeted range.

"This range was consistent with the state auditor’s recommendations," said Hodnefield. He went on to commend the city for another great financial year.

"From a budget standpoint 2011 year end revenues exceeded expectations by $420,00 and expenses came in under budget by about the same amount," said City Administrator Bret Heitkamp. "From a financial standpoint the city had a fantastic year, our financial portfolio remains strong."

Mayor Mark Uglem commended the finance department staff for keeping a close eye on the city’s finances. The city’s financial report has once again been submitted for an award on achievement and excellence, something that the city has earned for eight consecutive years.

"That means you have gone above and beyond the minimum standards," said Hodnefield.